Many investors focus on securing a cheap deal on a property to maximize their profit. But it's not the only way to make money. And in a turbulent market, you need more than one money-making avenue.
Read on to learn about four different ways to improve the returns you make on your investment property. Try these tips on your next purchase as a way to boost your profit and help grow your real estate business in Phoenix, Arizona.
1. Plan an Upgrade
Upgrading major parts of your property can make it more appealing and help boost its value. The two most impactful areas will be the kitchen and bathroom.
Buyers and tenants always look for homes with high-spec kitchens and clean, modern bathrooms.
But you can also change more minor parts of your property and still help increase the value.
For example, you could invest in energy-efficient appliances to make your property more sustainable and cheaper. Or you could improve the cosmetic appearance with fresh paint and new flooring.
2. Use Property Management Services
Achieving success with your investment property doesn't happen instantaneously when you buy it. It takes continued effort. But that's often a high demand for property investors whose focus may be elsewhere.
That's why property management services can help. It can make your property efforts more streamlined and efficient and save you money in the long run - thereby helping to boost your profits.
It means you have someone on hand to collect rent payments and organize maintenance. You also have a team to help with real estate marketing. And a service to help secure good tenants via professional tenant screening.
3. Review Your Pricing
Pricing your rental property isn't always straightforward. It requires a balance between the rental fee tenants are willing to pay and the number you are prepared to accept to make a healthy profit on your investment.
You need an excellent understanding of the local market to establish demand and recent trends. You'll also need to know more about the local neighborhood and how your property fits in that market compared to similar rentals.
Consider adding extras to make your rental fee more appealing, such as offering a flexible term on the rental contract.
4. Try Short-Term Rental
You can make more money from your rental by offering it out via a short-term lease. Try marketing it in the business community or as a tourist vacation retreat.
It helps fill gaps in your rentals, and if you offer a short-term lease during peak seasons, you can command a higher price than you'd get via a long-term rental.
If you want to choose this option, you must ensure your property condition is up to a high standard. When tenants pay a premium for a short time, they expect the best quality.
Making Money From Your Investment Property
The property market isn't always smooth sailing, and facing market uncertainty can leave you with nerves. But there are other ways to make money from your investment property. Try these four tips as your starting point.
You should also reach out to our experts at PMI Phoenix Golden West. We can give you practical advice on property management and improving your rental income in Phoenix, Arizona.
